North Carolina

North Carolina legislature passes insurance bill allowing Blue Cross to reorganize

Published

2 years ago

May 30, 2023

RALEIGH, N.C. (AP) — The North Carolina legislature gave final approval Tuesday to a bill allowing the state’s leading health insurance provider to restructure despite criticisms from the state insurance commissioner that it would erode his regulatory authority and undermine his ability to protect consumers.

The measure, which permits Blue Cross and Blue Shield of North Carolina and a dental insurance provider to transfer assets into a parent holding company, cleared the Senate 41-5 Tuesday after passing the House with similar bipartisan support earlier this year.

Shepherded through the legislature by Republicans and one top Democrat, the bill now heads to the desk of Democratic Gov. Roy Cooper, who will review the legislation, a spokesperson said.

If Cooper signs the bill or lets it become law without his signature, Blue Cross and Delta Dental will be able to move money, property and other investments from their existing hospital service companies to new shell companies run by the same executive leadership. They could, for example, use those assets to purchase other companies and expand their services.

The changes would take effect as soon as it becomes law.

“At the present time, Blue Cross is operating at a disadvantage in the market,” Senate leader Phil Berger said Tuesday after the vote. “And the main reason I’m supportive of the bill is because I think it helps level the playing field and allows them to compete on an even plane with other health care insurance providers.”

While Blue Cross, a fully taxed nonprofit, says the reorganization would give it more flexibility to behave like its for-profit competitors, state Insurance Commissioner Mike Causey argues his department would not have ample oversight to make sure the holding company acts in the best interest of consumers.

The bill includes provisions requiring the holding company to invest in entities that promote affordability or “contribute to the health needs of North Carolina residents.” It also caps the amount of “admitted assets” the insurer can transfer to the holding company at 25%.

The holding company also would have to file annual audited financial statements with Causey’s office, disclose compensation for its highest-paid executives and reveal its “strategic investment activities.”

But Causey, a Republican, said the bill gives Blue Cross “tremendous leeway” to use money that he said belongs to North Carolina ratepayers for its own self-interest.

“I have no ability to hold them accountable on what they do with the holding company once that money is taken out of Blue Cross the insurance company,” Causey told The Associated Press after the vote. “We can only hope that the consumers will not be harmed.”

Before the vote, Sen. Todd Johnson, a Union County Republican and bill sponsor, assured fellow senators that the bill included “90% of what the commissioner of insurance was asking for.”

But Causey told the AP later Tuesday, “It’s maybe closer to 10%, but very little.”

Blue Cross spokesperson Sara Lang applauded the legislature for passing a bipartisan bill that she said would “help improve health care access” and “build on our state’s strong business climate.”

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Hannah Schoenbaum is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.

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North Carolina

Vote: Who Should Be the North Carolina Boys High School Basketball Player of the Week? (1/20/2025)

Published

43 minutes ago

January 21, 2025

Press Room

Vote: Who Should Be the North Carolina Boys High School Basketball Player of the Week? (1/20/2025)

Who was the North Carolina Boys Basketball Player of the Week last week?

Each week, High School On SI scours the state of North Carolina and compiles the top performances from the previous week.

Congratulations to last week’s winner: Jalin Sutton of Greene Central.

Voting closes at 11:59 p.m. Sunday, Jan. 26. The winner will be announced in the following week’s poll. Here are this week’s nominees:

The 6-foot-5 junior guard scored 26 points on 9-of-13 shooting, grabbed 7 rebounds and blocked 4 shots in the Sabres’ 71-63 win over Myers Park. Houpt also had 15 points in a 65-56 win over White Oak.

Kerr, a top 100 national recruit, scored 24 points as the Cougars toppled nationally ranked and previously undefeated Christ School 73-66. The 6-foot-4 junior guard has 10 college offers.

Charles scored 27 points and got 8 rebounds in a 56-42 win over Southside. The 6-foot-4 senior also had 22 points, 8 rebounds and 4 assists in an 84-38 rout of Pamlico County.

Blow scored 17 points and got 6 rebounds in a 67-59 victory over Ayden-Grifton.

Barron scored 19 points while getting 7 steals and 5 assists in a 77-57 victory over Northwest Halifax.

Edwards posted 27 points, 8 rebounds and 8 assists in an 89-39 romp over Wayne Christian. He also had 17 points in an 84-57 win over First Flight.

Brewer dominated with 34 points, 9 rebounds, 7 assists and 4 steals in a 66-48 win over Pisgah.

Parkins erupted for 39 points, tying a career high, in a 90-66 win over Asheville. The 6-foot-7 senior also had 17 rebounds. He had 27 points and 13 rebounds in an 81-65 win over Erwin.

Brown scored 30 points and had 5 rebounds in an 84-80 overtime win over Tuscola. In addition, he had 21 points in a 59-45 loss to East Henderson.

Fannon scored 31 points, including 9-of-14 from 3-point range, as the Mustangs beat St. Stephens 93-70.

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North Carolina

North Carolina Democratic state lawmaker resigns after terminal cancer diagnosis

Published

9 hours ago

January 20, 2025

Press Room

North Carolina Democratic state lawmaker resigns after terminal cancer diagnosis

RALEIGH, N.C. (AP) — A longtime Wake County Democratic state representative announced his resignation from the North Carolina General Assembly on Sunday.

Rep. Joe John, who represented northwestern Wake County, shared news of his resignation in a letter posted to his Facebook page, after he said he received a terminal diagnosis for throat cancer from his doctors. John, 85, first stated publicly that he was diagnosed with throat cancer in early December.

“I hope my legacy will be one of dedication to the common good — working to build bridges, advocate for the voiceless, and fight for justice,” he said.

John was first elected as a state representative in 2016 and served four consecutive terms. His upcoming term would have been his fifth. Before serving in the legislature, John spent a large portion of his life in the judicial field — as a state appeals judge, superior court judge and district judge. He also served as the State of North Carolina Crime Laboratory’s director.

The Wake County Democratic Party will be in charge of choosing someone to fill John’s vacant seat.

John said in his letter that he plans to focus on his health and spend time with his family after resigning.

“If my time in office has made even a small difference in your lives, then I will leave this world knowing I’ve done my part,” John said.

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North Carolina

How will NC industries be impacted with Trump in office?

Published

16 hours ago

January 20, 2025

Press Room

Republican President-elect Donald Trump returns to the White House on Monday, vowing swift action on a host of issues that could impact nearly every American — and could have a particularly profound effect on North Carolina’s economy.

Reporter : Kelsey Coffey
Photographer : Mark Olexik
Web Editor : Jessica Patrick

Posted 2025-01-20T07:13:38-0500 – Updated 2025-01-20T07:13:38-0500

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